Creativity and Innovation

management
17 B2
 Introduction
• Creativity: idea+ action
• Innovation: creativity + productivity
• Business innovation: creativity +
commercialization.
• Innovation is process of creating and exploiting
ideas.
• Creating something novel, may be with existing
ones.
• Should be beneficial.
 Characteristics
• Innovation is a tangible product, process or
procedure.
• It should be new to the society within which it is
introduced.
• It should be intentional rather incidental.
• It must be challenging change.
• It should be public in impact.
• Destructive actions are not considered as
innovations.
 Component

• There are three components of innovation:

• 1. Physical: computer, semiconductors etc.
• 2. Functional: computer software, process
reengineering.
• 3. knowledge component
 Types:
• 1. Product vs. process innovations.
• 2. Radical vs. incremental innovations.
 Models of innovation
• 1. stage based model( Zaltman et.al): consist
of 2 steps
• A.)initiation
• B.)implementation
• Initiation: a.) knowledge awareness b.)
formation of attitudes c.)decision
• Implementation: a.)initial implementation b.)
continued-sustained implementaion
 Non linear model of innovation
• Three stages
• Initiation:
• Most innovations have long gestation period.
• Internal or external shocks trigger initiation.
• Plans are made more to sell the idea.
• Developmental:
• Initial idea proliferates
• Mistakes are encountered
• Criteria of success or failure changes during the process
• Members participate in innovations in more fluid way
• Senior mgt and investors intervene
• Relations with other org. develop
• Innovation participants work with external organizations and agencies to build infrastructure for
innovations.
• Implementation:
• New and old are linked
• Either implemented or terminated due to lack of resources.
 Originators of innovation
• There are two conflicting views on the topic
• 1. the social deterministic school argues that
innovations are the result of a combination of
external social factors and influences. The
argument is- when the conditions were
favorable and right, innovations would occure.
• 2. the individualistic school argues that
innovations are the result of unique individual
talents and as such innovators are born.
 Key drivers of innovation
• Other models and key drivers are:
• 1950/60s- technology push: emphasis on r&d.
market is recipient of fruits of r&d.
• 1970s- market pull: emphasis on marketing.
Market I a source for directing r&d.
• 1980s- coupling: emphasis on integrating r&d
and technology.
• 1980/1990s: combination of pull and push
Factors influencing innovations
 Organizing for innovation: organizational
structures
• Project based organizations.
• Matrix organizations.
• Quasi structure.
• New venture divisions.
• Virtual organizations.
• Boundary less organizations.
• Learning organizations.
Factors influencing organizational design

• Environmental factors:
• When technology is salient than market
development- research centers.
• When market development is salient than
technology- new venture divisions.
• When both market and technology assume
saliency- matrix.
• For a technology based firms- quasi structure.
 Strategy factors
• Innovation mix.

• Diversification: de-centralization.

• Radical innovation: separate r&d.

 Need for creative organizations

• Change
• Competition
• Informed customers
• Crises
Characteristics of creative organizations

• People: autonomy & intrapreneurship

• Attitude: value driven, hands on, leadership

and management support.

• Organization: simple form, lean staff,

centralized or decentralized.
• Market: stay close to the market.
 Creativity crushers
• Management is a science.

• Pressure of today.

• Apathy of employees.

• Friendship.
 7s framework
• Shared value.
• Style.
• Structure.
• Strategy.
• System.
• Staff .
• Skill.
 Fostering innovation climate and culture

• Create ambidextrous organization.

• Establish strategic direction.
• Align resources with strategy.
• Hire right people.
• Employ diverse workforce.
• Leaders- be visible and involved.
 Continued…
• Maintain open and receptive environment.
• Retain scientific skepticism.
• Promote risk taking attitudes.
• Have tolerance to failures.
• Allow free exchange of information.
• Provide access to knowledge resources.
• Set up learning mechanism.
• Develop cross functional teams.
• Provide support to innovation roles.
• Establish rewards system.
• Design congenial physical workplace.
Research and development management

• R&D are the use of resources, to create new

knowledge and to develop new and improved
product and more economic methods of
participation.
• Research is the part devoted to discovering
new knowledge and development is the part
devoted to bringing new ideas to a stage
where production for the market can start.
 Objectives

• To support current business.

• To provide new business ventures.

• To explore possible new technology basis.

 Significance & prerequisites
• Significance in two areas:
• a.) Economy.
• b.) Society.
• PREREQUISITES:
• Scientific and technological capability.
• Market demand.
• An agent that transforms the capability into
goods and services, which satisfy the demand.
 Technology development approaches
• In house r&d:
• Technology development activities are generally
carried out through setting up of separate in
house r&d units within the corporation, managed
and headed by a well qualified and experienced
chief, directly reporting to the top management.
This unit will have close interaction with other
departments within the company and may even
involve an exchange of personnel.
 CO-OPERATIVE R&D
• A group of companies particularly from a
sector promotes an r&d center as a society or
a non profit making company. The expenses
for r&d efforts are met from the contributions
of the participating companies as a fixed
percentage of their turnovers as well as grants
from the governments. E.g. National council of
building materials at new Delhi.
 Contract research
• A company may contract components of
technology development to suitable r&d
organizations, academic institutions or
consultants or experts.
 R&d collaborations
• A company may collaborate with other in areas of common
interest. Such inter firm collaborative r&d efforts are
becoming common in developed countries mainly due to
high cost and shorter technology life cycles.
• A firm may collaborate with the public funded or privately
funded r&d institutions on case to case basis where r&d
results are shared mutually and so are expenses.
• A company from India may collaborate with other abroad
on mutually agreed terms. The government of India
encourage such activities.
 R &D
• Research societies.

• Research companies.